PACRA Maintains Asset Manager Rating of 786 Investments Limited
Lahore, December 27, 2019 (PPI-OT):The rating reflects the Company’s modest positioning in the competitive asset management industry. The Company has a strong governance framework in place. The management is working on further improving the profitability through consolidation of fund slate and growth in niche Islamic Market. In this regard, the Company has merged First Dawood Mutual Fund and 786 Rising Star Fund with and into 786 Smart Fund, which falls under Shariah compliant Income category.
The effective date of merger is December 20, 2019. The fund performance remained strong with 786 Smart Fund outperforming the peers in the category. The Company has limited fund size. Losses in previous periods eroded its equity, although it meets the minimum regulatory requirement as equity is expected to build up through internal generation. Strong sponsor commitment is considered positive for the rating. The Company has an experienced management team and adequate organizational structure.
The rating is dependent on materialization of strategy to enhance AUM’s and market position of the Company. Meanwhile, maintaining strong fund performance and diversifying fund slate is important. Upholding high governance standards and strengthening of risk management is crucial for the rating.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425